Factors influencing South African female generation Y students’ purchase behaviour of beauty products

FACTORS INFLUENCING SOUTH AFRICAN FEMALE GENERATION Y

STUDENTS’ PURCHASE BEHAVIOUR OF BEAUTY PRODUCTS

RIANÉ CHERYLISE DALZIEL

STUDENT NUMBER: 20316054

Thesis submitted in fulfilment of the requirements for the degree

DOCTOR OF PHILOSOPHY

in the discipline of

MARKETING MANAGEMENT in the

FACULTY OF ECONOMIC SCIENCES AND INFORMATION TECHNOLOGY

at the

VAAL TRIANGLE CAMPUS of the

North-West University

Promoter: Prof. N. de Klerk

Co-promoter: Prof. AL Bevan-Dye

Vanderbijlpark 2016

DECLARATION

I declare that:

“Factors influencing South African female Generation Y students’ purchase behaviour of beauty products”

is my own work and that all the sources I have used or quoted have been indicated and acknowledged by means of complete references, and that this dissertation has not previously been submitted by me at any other university.

SIGNATURE DATE

RIANÉ CHERYLISE DALZIEL November 2016

ACKNOWLEDGEMENTS

A special word of thank you to the following persons who have assisted me in completing this study:

 To God who inspires me and leads the path in my life and who carries me through all my trials and testings.

 To my parents, Pierre and Malie Zeeman, for providing me with the invaluable gift of education and for their on-going love, support and motivation.

 To my husband, Jacques Dalziel, for his love, constant support, motivation and patience.  To my promoter, Prof. Natasha de Klerk, for her kind words, constant motivation, guidance

and expertise in assisting me to complete the study.

 To my co-promoter, Prof. Ayesha Bevan-Dye, who provided additional guidance and expertise in assisting me to complete this study.

 To Ms Aldine Oosthuyzen of the North-West University (Vaal Triangle Campus) for the formatting of the document.

 To Ms Hettie Sieberhagen for her professionalism in the language editing of this study.  To Prof. Casper Lessing for his assistance with the bibliography list.

 To the lecturers and undergraduate students who participated in the pilot and main survey questionnaire of the final study.

 To the rest of my family, friends and colleagues who gave additional support and advice in assisting me to complete this study.

Riané Cherylise Dalziel Vanderbijlpark

ABSTRACT

KEY WORDS: Fashion, beauty products, purchase intention, South Africa, Generation Y, female consumers

Fashion is regarded as a significant part of the economy, as the global fashion industry revenue reaches an astounding 1.2 trillion USD annually (Attire Club, 2013). In South Africa, fashion is regarded as an important industry that forms part of the economic development programme of the government (Grail Research, 2009:13). Brown (2013) explains that the African fashion industry has a forecast to become an industry worth 15.5 billion USD by 2019 (Aderibigbe, 2014). Fashion is perceived by the fashion industry as a selection of material and non-material aspects and, therefore, defined as an object as well as a process (Vieira, 2009:179). According to Rudd and Lennon (2000:152), the fashion process includes any aspect that forms part of managing one's outward appearance. Therefore, individuals do not only make use of apparel, they also utilise cosmetics to enhance their appearance or express their style. Accordingly, fashion comprises a number of different industries, namely apparel, footwear, leather, jewellery, perfumes, and cosmetics (Macchion et al., 2015:173).

The Euromonitor International (2015) specifies that the global cosmetic industry maintained an industry growth of five percent in 2014. Allied Market Research (2015), reiterates this by stating that lifestyle improvements and the increase of disposable income will result in a future growth in the global cosmetics market. In 2013, the South African cosmetic industry accounted for six percent (R17 billion) of the manufacturing industry (Vorster, 2014:4), with a growth of 4.1 percent annually, between 1995 and 2013. In a market that has reached such a level of vigorous development, it is imperative to understand consumers’ consumption regarding cosmetics or beauty products (Chen et al., 2011:11630). The young female market’s significant interest in cosmetics is perceived to be especially salient to fashion marketers and retailers (Nezakati et al., 2013:127).

Yalkin and Rosenbaum-Elliot (2013:301) contest that it is essential to understand the underlying factors of the consumption of younger consumers. Parment (2013:190) states that younger consumers, the Generation Y cohort, is sizeable and has significant purchasing power. Markert (2004:21) defines Generation Y as those individuals born between 1986 and 2005, which in 2016 puts them at 11 to 30 years of age. South Africa’s population totalled around 55 908 900 in 2016,

of which an estimated 37 percent formed part of the Generation Y cohort (Statistics South Africa, 2016). The size of this cohort makes them salient to South African marketers and retailers. Generation Y members who have engaged in tertiary education are especially important to marketers, as higher education correlates with higher future earning potential and higher social standing (Bevan-Dye & Surujlal, 2011:49; Day & Newburger, 2002). In addition, Kim and Jang (2014:39) opine that the Generation Y cohort has more occasions and reasons to spend, and that women from this group are prone to spend more money on luxury purchases. Female consumers enjoy considerable purchasing power, which increases their economic force (Pudaruth et al., 2013:179), as they control 20 trillion USD in annual consumer spending globally, and this amount is expected to increase to nearly 30 trillion USD (Barmann, 2014). Research reveals that the impact of female consumers is ascendant in the cosmetic and beauty care industry (Pudaruth et al., 2013:180). Moreover, research indicates women’s physical appearance is more important in society than men’s physical appearance, and women will most likely use fashion to express their identity and uniqueness (Bakewell et al., 2006).

The primary objective of this study was to propose and empirically test a model of the antecedents of female Generation Y students’ purchase intention of beauty products in South Africa. The proposed model suggests that attitude towards beauty products, variety-seeking, status consumption, subjective norms, media influence, group influence, celebrity influence, physical vanity, price consciousness and beauty product innovativeness are factors that influence female Generation Y students’ purchase intention towards beauty products.

The sampling frame consisted of a list of the 26 registered South African public HEIs, which included 11 traditional universities, nine comprehensive universities and six universities of technology. From the sampling frame, a non-probability judgement sample of three HEI campuses situated in the Gauteng province was selected. Of these, one is a traditional university, one a university of technology and one a comprehensive university. Thereafter, a single cross-sectional non-probability convenience sample of 780 full-time undergraduate female Generation Y students aged between 18 and 24 was taken in 2016. Of the questionnaires completed, 610 were usable. The statistical analysis of the collected data included exploratory factor analysis, descriptive statistical analysis, correlation analysis and structural equation modelling.

The findings of this study indicate that female Generation Y students have a favourable attitude towards beauty products, and that these attitudes, together with subjective norms, price

consciousness and product innovativeness have a direct influence on these consumers’ purchase intention of beauty products. Moreover, they display positive intentions towards beauty products. Furthermore, these consumers are influenced by their variety-seeking and status consumption orientation regarding their beauty product purchases. Media-, celebrity-, and group influence, as well as their level of physical vanity, price consciousness and beauty product innovativeness play an imperative role in the beauty product purchases of these consumers.

This study contributes to the limited literature available on consumers’ purchase intention towards beauty products in the South African market, with specific reference to the factors that influence the female Generation Y cohort’s purchase intention of beauty products. Furthermore, this study will add information and theory to the literature of South Africa and enhance beauty product purchase intention literature internationally. The findings of this study provide insight into predicting the female Generation Y cohort’s purchase intentions across a range of beauty product categories in the South African context. In addition, the results of this study have important implications for South African and international marketing practitioners and retailers involved in beauty product retailing, given that they can use the model proposed by this study to understand the factors that influence female Generation Y students’ purchase intention of beauty products. This study offers guidance for selecting, developing or adapting effective marketing strategies to target the female portion of the Generation Y cohort within the South African beauty product industry.

TABLE OF CONTENTS

DECLARATION... i

LETTER FROM THE LANGUAGE EDITOR ... ii

ACKNOWLEDGEMENTS ... iv

ABSTRACT ... v

TABLE OF CONTENTS ... viii

LIST OF TABLES ... xv

LIST OF FIGURES ... xvii

CHAPTER 1 INTRODUCTION AND PROBLEM STATEMENT ... 1

1.1 INTRODUCTION AND BACKGROUND ... 1

1.2 PROBLEM STATEMENT ... 4

1.3 OBJECTIVES OF THE STUDY ... 5

1.3.1 Primary objective ... 5

1.3.2 Theoretical objectives ... 5

1.3.3 Empirical objectives ... 5

1.4 HYPOTHESES ... 6

1.5 RESEARCH DESIGN AND METHODOLOGY ... 9

1.5.1 Literature Review ... 10 1.5.2 Empirical study ... 10 1.5.2.1 Target population ... 10 1.5.2.2 Sampling frame ... 10 1.5.2.3 Sample method ... 11 1.5.2.4 Sample size ... 11

1.5.2.5 Measuring instrument and data collection method ... 11

1.6 ETHICAL CONSIDERATIONS ... 12

1.7 DEMARCATION OF THE STUDY ... 13

1.8 MOTIVATION FOR THE STUDY ... 13

1.9 CHAPTER CLASSIFICATION ... 14

1.10 GENERAL ... 15

1.11 CONCLUSION ... 15

CHAPTER 2 CONSUMER BEHAVIOUR ... 17

2.1 INTRODUCTION ... 17

2.2 CONSUMER BEHAVIOUR DEFINED ... 18

2.2.1 Model of consumer behaviour ... 19

2.3 CONSUMER DECISION-MAKING PROCESS ... 21

2.3.1 Problem recognition ... 21

2.3.2 Pre-purchase search ... 22

2.3.3 Evaluation of alternatives ... 23

2.3.4 Purchase ... 23

2.3.5 Post-purchase evaluation processes ... 24

2.4 FACTORS INFLUENCING THE CONSUMER DECISION-MAKING PROCESS ... 25

2.4.1 Organisational marketing efforts ... 26

2.4.2 Reference groups ... 28 2.4.3 Family ... 30 2.4.4 Non-commercial sources ... 30 2.4.5 Social class ... 31 2.4.6 Culture ... 32 2.4.7 Subculture ... 33 2.4.8 Demographics ... 34 2.4.9 Perception ... 35

2.4.10 Learning ... 36 2.4.11 Memory ... 37 2.4.12 Motivation ... 38 2.4.13 Personality ... 40 2.4.14 Emotions ... 41 2.4.15 Lifestyle ... 41 2.4.16 Attitudes ... 42

2.5 ATTITUDE THEORIES AND MODELS ... 44

2.5.1 Tri-component attitude model ... 44

2.5.2 Hierarchy of effects ... 45

2.5.3 Attitude-toward-object (Fishbein) model ... 47

2.5.4 Attitude-toward-behaviour model ... 49

2.5.5 Theory of reasoned action ... 50

2.5.6 Theory of planned behaviour ... 50

2.6 CONCLUSION ... 52

CHAPTER 3 THE THEORY OF REASONED ACTION AND GENERATION Y ... 54

3.1 INTRODUCTION ... 54

3.2 THE THEORY OF REASONED ACTION ... 55

3.3 FACTORS INFLUENCING BEAUTY PRODUCT PURCHASE INTENTION ... 60 3.3.1 Variety-seeking ... 60 3.3.2 Status consumption ... 62 3.3.3 Media influence ... 63 3.3.4 Group influence ... 65 3.3.5 Celebrity influence ... 67 3.3.6 Physical vanity ... 68 3.3.7 Price consciousness ... 69

3.3.8 Beauty product innovativeness ... 71 3.4 FASHION ... 72 3.5 BEAUTY PRODUCTS ... 74 3.6 GENERATION Y DEFINED ... 76 3.6.1 Characteristics of Generation Y ... 76 3.6.2 Female Generation Y ... 80

3.7 PROPOSED MODEL OF THE FACTORS INFLUENCING FEMALE GENERATION Y STUDENTS’ PURCHASE INTENTION OF BEAUTY PRODUCTS ... 82

3.8 CONCLUSION ... 83

CHAPTER 4 RESEARCH DESIGN AND METHODOLOGY ... 85

4.1 INTRODUCTION ... 85 4.2 RESEARCH DESIGN ... 86 4.3 RESEARCH APPROACH ... 88 4.4 SAMPLING STRATEGY ... 89 4.4.1 Target population ... 90 4.4.2 Sampling frame ... 91 4.4.3 Sample method ... 94 4.4.4 Sample size ... 96

4.5 DATA COLLECTION METHOD ... 96

4.5.1 Questionnaire design ... 99

4.5.2 Questioning format ... 101

4.5.3 Questionnaire layout ... 105

4.6 PRE-TESTING OF THE QUESTIONNAIRE ... 108

4.7 ADMINISTRATION OF THE QUESTIONNAIRE ... 109

4.8 PRELIMINARY DATA ANALYSIS ... 110

4.9.1 Frequency analysis ... 112

4.9.2 Factor analysis ... 113

4.9.3 Reliability analysis ... 114

4.9.4 Validity analysis ... 117

4.9.5 Descriptive statistical analysis ... 118

4.9.6 Correlation analysis ... 121

4.9.7 Multicollinearity ... 122

4.9.8 Structural equation modelling ... 123

4.9.8.1 Defining individual constructs ... 124

4.9.8.2 Measurement model specification ... 124

4.9.8.3 Measurement model assessment ... 125

4.9.8.4 Structural model specification ... 126

4.9.8.5 Measurement and structural model fit ... 127

4.10 CONCLUSION ... 128

CHAPTER 5 ANALYSIS AND INTERPRETATION OF EMPIRICAL FINDINGS ... 130

5.1 INTRODUCTION ... 130

5.2 PILOT TEST RESULTS ... 130

5.3 DATA GATHERING PROCESS ... 134

5.4 PRELIMINARY DATA ANALYSIS ... 134

5.4.1 Coding ... 135

5.4.2 Data cleaning ... 136

5.4.3 Tabulation ... 137

5.5 DEMOGRAPHIC AND BEAUTY PRODUCT INFORMATION ANALYSIS .. 140

5.5.1 Sample description ... 140

5.5.2 Sample’s beauty product information ... 147

5.7 INTERNAL-CONSISTENCY RELIABILITY OF MAIN STUDY ... 152

5.8 DESCRIPTIVE STATISTICS ... 152

5.9 CORRELATION ANALYSIS ... 154

5.10 HYPOTHESES TESTING ... 157

5.11 STRUCTURAL EQUATION MODELLING ... 160

5.11.1 Measurement model specification ... 161

5.11.2 Composite reliability and construct validity of measurement model ... 165

5.11.3 Structural model ... 168

5.12 CONCLUSION ... 173

CHAPTER 6 CONCLUSION AND RECOMMENDATIONS ... 175

6.1 INTRODUCTION ... 175

6.2 OVERVIEW OF THE STUDY ... 176

6.3 MAIN FINDINGS OF THE STUDY ... 178

6.4 CONTRIBUTION OF THE STUDY ... 183

6.5 RECOMMENDATIONS ... 183

6.5.1 Continue to monitor female Generation Y students’ attitudes towards beauty products ... 184

6.5.2 Incorporate digital media platforms to reach female Generation Y ... 184

6.5.3 Make use of celebrities to reach female Generation Y ... 185

6.5.4 Incorporate friends and family into marketing strategies aimed at targeting female Generation Y members ... 185

6.5.5 Develop unique marketing strategies to attract Generation Y beauty product innovators ... 186

6.5.6 Focus beauty product marketing strategies on physical vanity (appearance) ... 186

6.5.7 Incorporate price discounts into marketing strategies aimed at targeting female Generation Y members ... 187

6.6 LIMITATIONS AND FUTURE RESEARCH OPPORTUNITIES ... 187

BIBLIOGRAPHY ... 190

ANNEXURE A QUESTIONNAIRE ... 221

ANNEXURE B STRUCTURAL MODELS ... 226

STRUCTURAL MODEL A ... 227

LIST OF TABLES

Table 4.1: Registered South African public HEIs ... 91

Table 4.2: Mid-year population estimates by province ... 93

Table 4.3: Mid-year population estimates within 10-29 year old age brackets ... 93

Table 4.4: Antecedents of purchase intention towards beauty product purchasing ... 107

Table 4.5: Coding information ... 111

Table 5.1: Summary of pilot test results ... 131

Table 5.2: Description of constructs and variables ... 132

Table 5.3: Coding information ... 135

Table 5.4: Frequency table of responses ... 137

Table 5.5: Higher education institution ... 141

Table 5.6: Province of origin ... 142

Table 5.7: Current year of study ... 143

Table 5.8: Ethnicity profile ... 144

Table 5.9: Mother tongue language ... 145

Table 5.10: Participants’ age distribution ... 146

Table 5.11: Beauty product purchase frequency ... 147

Table 5.12: Money spent on beauty product purchases per month ... 149

Table 5.13: Rotated factors ... 150

Table 5.14: Reliability measures ... 152

Table 5.15: Descriptive statistics ... 153

Table 5.16: Correlation matrix ... 156

Table 5.18: Measurement model: construct reliability, average variance extracted and correlation matrix ... 167 Table 6.1: Summary of unsupported hypothesised relationships... 180 Table 6.2: Summary of supported hypothesised relationships... 181

LIST OF FIGURES

Figure 2.1: Model of consumer behaviour (Hawkins & Mothersbaugh, 2013:25) ... 20

Figure 2.2: Maslow’s hierarchy of needs (Schiffman & Kanuk, 2014:84) ... 39

Figure 2.3: Tri-component attitude model (Schiffman & Kanuk, 2014:197) ... 45

Figure 2.4: Hierarchy of effects (Solomon & Rabolt, 2009:282) ... 46

Figure 2.5: Theory of planned behaviour (Ajzen, 1991:182) ... 51

Figure 3.1: Theory of reasoned action (Fishbein & Ajzen, 1975) ... 56

Figure 3.2: Proposed model of the factors influencing female Generation Y students’ purchase intention of beauty products ... 83

Figure 4.1: Sampling strategy (Clow & James, 2014:227) ... 90

Figure 4.2: Probability and non-probability sampling methods (Wiid & Diggines, 2013:189) ... 95

Figure 4.3: Types of survey methods (Berndt & Petzer, 2011:135) ... 98

Figure 4.4: Scaling techniques (Malhotra, 2010:289) ... 103

Figure 4.5: Skewness (Kline, 2011:61) ... 120

Figure 4.6: Kurtosis (Kline, 2011:61) ... 121

Figure 5.1: Specified measurement model ... 162

Figure 5.2: Structural Model A ... 169

Figure 5.3: Structural Model B ... 171

Figure 6.1 Antecedents of South African female Generation Y students’ purchase intention towards beauty products ... 182

CHAPTER 1

INTRODUCTION AND PROBLEM STATEMENT

1.1 INTRODUCTION AND BACKGROUND

Fashion is regarded as a significant part of the economy, as the global fashion industry revenue reaches an astounding 1.2 trillion USD annually (Attire Club, 2013). According to Fashion United (2015), the UK fashion industry was worth £26 billion in 2014. Similarly, in South Africa fashion is regarded as an important industry that forms part of the economic development programme of the government (Grail Research, 2009:13). Brown (2013) concurs, stating that the South African fashion market has prodigious potential, as it is one of the top fashion markets in Africa. Furthermore, Brown (2013) explains that the African economy is performing particularly well compared to other developing economies, holding six of the top 10 performing economies in 2010, with an expectation of claiming seven by 2015. With such a growth rate, the African fashion industry is forecasted to become an industry worth 15.5 billion USD by 2019 (Aderibigbe, 2014).

Fashion is perceived by the fashion industry as a selection of material and non-material aspects and is, therefore, defined as an object as well as a process (Vieira, 2009:179). According to Rudd and Lennon (2000:152), the fashion process includes any aspect that forms part of managing one's outward appearance. Therefore, individuals do not only make use of apparel, they also utilise cosmetics to enhance their appearance or express their style. Fashion comprises a number of different industries, namely apparel, footwear, leather, jewellery, perfumes and cosmetics (Macchion et al., 2015:173).

While beauty products, also referred to as cosmetics, include any product used to care for, clean and enhance the beauty of the human body (Ergin et al., 2005:5), they are generally used by women to enhance physical attractiveness (Guthrie et al., 2008:165). Beauty products include skin-care, creams, lotions, perfumes, lipsticks, nail polish, eye and facial makeup, permanent waves, hair colours, deodorants, bath oils and mouthwashes (Solomon & Rabolt, 2009:545). Guthrie et al. (2008:164) add that make-up such as mascara, lipstick and eye shadow assists individuals in improving their self-image. Consequently, these products increase confidence levels and assist individuals in enhancing their appearance (Sahota, 2014:31). Craik (1993:158) adds that “make-up inscribes the attributes of personality onto the social body”.

According to Premium Beauty News (2015), the European cosmetics industry exhibited a growth of 0.5 percent in 2014, even though the growth in the overall economy was still weak. The Euromonitor International (2015) specifies that the global cosmetics industry maintained an industry growth of five percent in 2014. Allied Market Research (2015) reiterates this by stating that lifestyle improvements and the increase of disposable income will result in a future growth in the global cosmetics market. In 2013, the South African cosmetics industry accounted for six percent (R17 billion) of the manufacturing industry (Vorster, 2014:4), with an annual growth of 4.1 percent between 1995 and 2013. In a market that has reached such a level of vigorous development, it is imperative to understand consumers’ cosmetic or beauty product purchasing behaviour (Chen et al., 2011:11630). The young female market’s significant interest in cosmetics is epecially perceived to be salient to fashion marketers and retailers (Nezakati et al., 2013:127). According to the literature, the theory of reasoned action (TRA) can be applied to predict consumers’ behaviour across an extensive variety of contexts. These include, inter alia, recycling (Jones, 1990), nutrition (Shepherd & Towler, 1992), exercise (Abraham & Sheeran, 2003; Latimer & Ginis, 2005), food (Ackermann & Palmer, 2014; Tarkianinen & Sundqvist, 2005), environmental practices (Marshall et al., 2010), public land management (Bright et al., 1993), social media (Kim et al., 2015), safe sex (Bosomprah, 2001), alcohol use, (Codd & Cohen, 2003), health (Courneya & Hellsten, 1998), voting (Singh et al., 2001), female buying intentions within the fashion industry (Bellman et al., 2009) and consumer behaviour (Simonson, 1992). Ajzen and Fishbein (1980:82) state that the contributing factors of deliberate human behaviour can be determined by utilising the TRA. However, by establishing the intention of a consumer, the behaviour of the consumer can also be determined, as Ajzen (2002:665) opines intention to be a precursor of behaviour. This is supported by several other authors (Chan & Bishop, 2013; Hierman & Walrave, 2012; Mishra et al., 2014; Yousafzai et al., 2010). According to Ajzen (1991:181), the underlying motivational factors inducing a specific behaviour are captured by intentions. Furthermore, these motivational factors indicate the amount of effort consumers is willing to employ to execute that behaviour. Based on this theory, it is vital that managers understand the target market’s motivational factors in order to predict their purchase intention (Solvason, 2015:3). Consequently, for the purpose of this study, the TRA is used to examine the purchase intention of consumers with regard to beauty products. Yalkin and Rosenbaum-Elliot (2013:301) contest that it is essential to understand the underlying factors of the consumption of younger consumers. Generational research has found the

Generation Y cohort to be the most profitable cohort for marketers, and that individuals forming part of this cohort will play a noteworthy role in future. This is evident as Parment (2013:190) states that the Generation Y cohort is sizeable and has significant purchasing power. While experts differ on the exact start and end dates of this age cohort, Markert (2004:21) defines Generation Y as individuals born between 1986 and 2005. Accordingly, in 2016, these individuals are aged between 11 and 30. In South Africa, the Generation Y cohort accounts for approximately 37 percent of the total population of 55 908 900 in 2016 (Statistics South Africa, 2016). As such, this cohort is deemed a sizable cohort, which brands them as an important segment for South African marketers and retailers. Members of the Generation Y cohort who have engaged in tertiary education are of particular importance to marketers. This is due to the fact that consumers with higher education may have the potential to earn higher salaries, and have a higher social standing (Bevan-Dye & Surujlal, 2011:49; Day & Newburger, 2002). Furthermore, higher earnings and social standing may cause individuals to have a greater influence within the society (Baum & Payea, 2005; Bevan-Dye & Surujlal, 2011:49). According to Ma and Niehm (2006:622), Generation Y members demonstrate an overall fondness for purchasing, and are likely to spend easily and quickly. In addition, Kim and Jang (2014:39) opine that the Generation Y cohort has more occasions and reasons to spend, and that women from this group are prone to spend more money on luxury purchases.

Female consumers are enjoying considerable purchasing power, which increases their economic force (Pudaruth et al., 2013:179), as they control 20 trillion USD in annual consumer spending globally, and this number is expected to increase to nearly 30 trillion USD annually (Barmann, 2014). This may be due to females being appointed in advanced degree to high power jobs (O’Halloran, 2008:1), and due to female Baby Boomers who blazed new paths by attending college and entering the workforce in large numbers, as well as commanding better-paying and more secure jobs (Barmann, 2014). Research reveals that the impact of female consumers is ascendant in the cosmetics and beauty care industry (Pudaruth et al., 2013: 180). According to Brookman (2000), females of the Generation Y cohort spend an estimated 312 USD on a monthly basis, where approximately 50 percent of that amount is spent on jewellery, clothing and beauty products. In the US, female teenagers generally spend a total amount of 11 hours at shopping malls weekly (Bakewell & Mitchell, 2003:99). Moreover, research indicates that women’s physical appearance is more important in society when compared to men’s physical appearance, and women will most likely use fashion to express their identity and uniqueness

(Bakewell et al., 2006). For that reason, this study focuses on the female portion of the Generation Y cohort engaged in tertiary education.

1.2 PROBLEM STATEMENT

According to the literature, several studies have been conducted in international markets pertaining to the purchase intention of consumers. Furthermore, numerous studies have investigated factors influencing the purchase intention of consumers pertaining to a wide variety of products and services, and found a number of factors to have a significant effect on consumers’ purchase intention. Some of these include attitude, subjective norms, variety-seeking, status consumption, media influence, group influence, celebrity influence, physical vanity, price consciousness and beauty product innovativeness (Durvasula & Lysonski, 2008; Jin & Suh, 2005; McCrindle, 2003; Michaelidou & Dibb, 2009; Mishra et al., 2012; Moschis, 1976; Noble et al., 2009; O’Cass & Frost, 2002; Parment, 2013). However, none of these studies investigated all of these factors simultaneously. In order to determine the most influential among various factors, it is necessary to investigate them in chorus. As such, there is an absence of research pertaining to this topic, especially on examining various factors influencing the purchase intention of consumers towards beauty products.

Given the size of the South African Generation Y cohort, this is a lucrative segment to investigate. It is expected that Generation Y individuals with a tertiary qualification will have a higher earning potential. Thus, an understanding of the student portion of this cohort will presumably offer valuable insight into these consumers’ purchase intention regarding beauty products. As indicated in Section 1.1, female consumers have considerable purchasing power, which makes them an attractive segment for marketers, especially in the beauty product industry. With the significant development of the cosmetic market in South Africa, it is important to understand the factors influencing the purchase intention of consumers in this market (Vorster, 2014:4). Limited research is available on the purchase intention of consumers with reference to beauty products in South Africa. In order to address this gap in the literature, this study explores factors influencing the purchase intention of consumers in this market. Examining the purchase intention pertaining to a specific market assists in the development of effective marketing strategies. As such, marketers have much to gain from understanding the factors influencing female Generation Y students’ purchase intention of beauty products.

1.3 OBJECTIVES OF THE STUDY

The following objectives have been formulated for the study:

1.3.1 Primary objective

The primary objective of this study was to determine and model the factors influencing female Generation Y students’ purchase intention of beauty products in South Africa.

1.3.2 Theoretical objectives

In order to achieve the primary objective, the following theoretical objectives were formulated for the study:

 Outline the fundamental principles of consumer behaviour, the consumer decision-making process and the factors influencing the consumer decision-making process.

 Review various attitude models and theories.  Conduct a review on the theory of reasoned action.

 Review the literature on the influence of attitude, variety-seeking, status consumption, subjective norms, media influence, group influence, celebrity influence, physical vanity, price consciousness and beauty product innovativeness on the purchase intention of beauty products.

 Conduct a review of the literature on beauty products.

 Conduct a review of the literature pertaining to the characteristics of members of the Generation Y cohort.

 Propose a model of factors influencing South African female Generation Y students’ intention to purchase beauty products.

1.3.3 Empirical objectives

In accordance with the primary objective of the study, the following empirical objectives were formulated:

 Determine female Generation Y students’ variety-seeking orientation concerning beauty products.

 Determine female Generation Y students’ status consumption orientation concerning beauty products.

 Determine female Generation Y students’ subjective norms concerning beauty products.  Determine female Generation Y students’ perceived media influences concerning beauty

products.

 Determine female Generation Y students’ perceived group influences concerning beauty products.

 Determine female Generation Y students’ perceived celebrity influences concerning beauty products.

 Determine female Generation Y students’ level of physical vanity concerning beauty products.

 Determine female Generation Y students’ level of price consciousness concerning beauty products.

 Determine female Generation Y students’ level of beauty product innovativeness.  Determine female Generation Y students’ purchase intention towards beauty products.

 Empirically test a proposed model of the extent to which attitude, variety-seeking, status consumption, subjective norms, media influence, group influence, celebrity influence, physical vanity, price consciousness and beauty product innovativeness influence female Generation Y students’ intention to purchase beauty products.

1.4 HYPOTHESES

The following hypotheses were formulated in order to achieve the empirical objectives of the study:

Ho1: Antecedents of beauty product purchase intention is not an eleven-factor structure comprising attitude, variety-seeking, status consumption, subjective norms, media influence, group influence, celebrity influence, physical vanity, price consciousness, beauty product innovativeness and purchase intention.

Ha1: Antecedents of beauty product purchase intention is an eleven-factor structure comprising attitude, variety-seeking, status consumption, subjective norms, media influence, group influence, celebrity influence, physical vanity, price consciousness, beauty product innovativeness and purchase intention.

Ho2: Variety-seeking (+) does not have a significant direct influence on female Generation Y students’ beauty product innovativeness.

Ha2: Variety-seeking (+) does have a significant direct influence on female Generation Y students’ beauty product innovativeness.

Ho3: Status consumption (+) does not have a significant direct influence on female Generation Y students’ beauty product innovativeness.

Ha3: Status consumption (+) does have a significant direct influence on female Generation Y students’ beauty product innovativeness.

Ho4: Media influence (+) does not have a significant direct influence on female Generation Y students’ beauty product innovativeness.

Ha4: Media influence (+) does have a significant direct influence on female Generation Y students’ beauty product innovativeness.

Ho5: Celebrity influence (+) does not have a significant direct influence on female Generation Y students’ beauty product innovativeness.

Ha5: Celebrity influence (+) does have a significant direct influence on female Generation Y students’ beauty product innovativeness.

Ho6: Physical vanity (+) does not have a significant direct influence on female Generation Y students’ beauty product innovativeness.

Ha6: Physical vanity (+) does have a significant direct influence on female Generation Y students’ beauty product innovativeness.

Ho7: Media influence (+) does not have a significant direct influence on female Generation Y students’ subjective norms concerning beauty products.

Ha7: Media influence (+) does have a significant direct influence on female Generation Y students’ subjective norms concerning beauty products.

Ho8: Group influence (+) does not have a significant direct influence on female Generation Y students’ subjective norms concerning beauty products.

Ha8: Group influence (+) does have a significant direct influence on female Generation Y students’ subjective norms concerning beauty products.

Ho9: Variety-seeking (+) does not have a significant direct influence on female Generation Y students’ attitude towards beauty products.

Ha9: Variety-seeking (+) does have a significant direct influence on female Generation Y students’ attitude towards beauty products.

Ho10: Subjective norms (+) do not have a significant direct influence on female Generation Y students’ attitude towards beauty products.

Ha10 Subjective norms (+) have a significant direct influence on female Generation Y students’ attitude towards beauty products.

Ho11: Physical vanity (+) does not have a significant direct influence on female Generation Y students’ attitude towards beauty products.

Ha11: Physical vanity (+) does have a significant direct influence on female Generation Y students’ attitude towards beauty products.

Ho12: Beauty product innovativeness (+) does not have a significant direct influence on female Generation Y students’ attitude towards beauty products.

Ha12: Beauty product innovativeness (+) does have a significant direct influence on female Generation Y students’ attitude towards beauty products.

Ho13: Attitude towards beauty products (+) does not have a direct significant influence on female Generation Y students’ beauty product purchase intention.

Ha13: Attitude towards beauty products (+) does have a direct significant influence on female Generation Y students’ beauty product purchase intention.

Ho14: Variety-seeking (+) does not have a direct significant influence on female Generation Y students’ beauty product purchase intention.

Ha14: Variety-seeking (+) does have a direct significant influence on female Generation Y students’ beauty product purchase intention.

Ho15: Subjective norms (+) do not have a direct significant influence on female Generation Y students’ beauty product purchase intention.

Ha15: Subjective norms (+) have a direct significant influence on female Generation Y students’ beauty product purchase intention.

Ho16: Group influence (+) does not have a direct significant influence on female Generation Y students’ beauty product purchase intention.

Ha16: Group influence (+) does have a direct significant influence on female Generation Y students’ beauty product purchase intention.

Ho17: Price consciousness (+) does not have a direct significant influence on female Generation Y students’ beauty product purchase intention

Ha17: Price consciousness (+) does have a direct significant influence on female Generation Y students’ beauty product purchase intention.

Ho18: Beauty product innovativeness (+) does not have a direct significant influence on female Generation Y students’ beauty product purchase intention.

Ha18: Beauty product innovativeness (+) does have a direct significant influence on female Generation Y students’ beauty product purchase intention.

1.5 RESEARCH DESIGN AND METHODOLOGY

The study comprised a literature review and an empirical study. Quantitative research, using the survey method, was used for the empirical portion of the study. The study focused on measuring attitudes and, therefore, a descriptive research design with a single cross-sectional sample was followed.

1.5.1 Literature Review

In order to support the empirical portion of this research study, international as well as South African literature was used. This literature was obtained from secondary data sources, including the Internet, journal articles, academic articles, textbooks, online academic databases, business articles, newspaper articles and magazine articles.

1.5.2 Empirical study

The empirical portion of this study encompasses the following methodology dimensions: 1.5.2.1 Target population

For this study, the target population was female Generation Y students between 18 and 24 years of age, registered at South African higher education institutions (HEIs). Specifically, the target population was defined as follows:

 Element: Female full-time Generation Y undergraduate students aged between 18 and 24 years.

 Sampling unit: South African registered public HEIs.  Extent: Gauteng, South Africa.

 Time: 2016.

1.5.2.2 Sampling frame

The sampling frame for this study comprised the 26 registered HEIs in South Africa, as listed by the Higher Education in South Africa website, of which there are 11 traditional universities, nine comprehensive universities and six universities of technology (Higher Education in South Africa, 2015). From the initial sampling frame, a non-probability judgement sample of three HEI campuses located in the Gauteng province was selected, one traditional university, one university of technology and one comprehensive university. The Gauteng province was chosen as the main sample of this study due to it encompassing the largest share of the South African population.

1.5.2.3 Sample method

In order to conduct this study, a single cross-sectional non-probability convenience sample of full-time undergraduate female Generation Y students, aged between 18 and 24, was selected. Permission for students to partake in the study was obtained from lecturers at each of the three HEIs. Lecturers were informed that participants were not to be forced to complete the questionnaire; therefore, it was done on a voluntary basis and the participants’ identity was kept anonymous. Subsequently, the participating lecturers were asked to hand out the self-administered questionnaire to students attending one of their scheduled classes.

1.5.2.4 Sample size

A sample size of 780 full-time undergraduate female Generation Y students was selected for this study. Previous studies of a comparable sort, such as Ergin et al. (2005) (sample size of 600), Kaushal (2011) (sample size of 700) and Kamal et al. (2013) (sample size of 400) validate the selected sample size of 780 as sufficient. The sample size of 780 full-time undergraduate female students was divided equally between the three HEIs. This allowed a sample size of 260 female students on each campus.

1.5.2.5 Measuring instrument and data collection method

In order to collect the required data, participants of this study were asked to complete a structured self-administered questionnaire. The measuring instrument utilised to measure undergraduate Generation Y female students’ purchase intenion of beauty products comprised existing scales used in previously published research. The scales from Coulter et al. (2002), Eastman et al. (1999), Eze et al. (2012b), Goldsmith and Hofacker (1991), Kim and Karpova (2010), Lichtenstein et al. (1993), Mascarenhas and Higby (1993), Moschis (1967), Netemeyer et al. (1995) as well as Song et al. (2014) were adapted and used in this study.

The students were requested to complete a questionnaire comprising two sections. The first section (Section A) was aimed at gathering the demographical information of the participants. Section B gathered the participants’ beauty product purchase information. The following section (Section C) includes the items pertaining to the factors influencing students’ purchase intention of beauty products. This scale measured the students’ perceptions and attitudes towards beauty products and comprised 11 dimensions, measuring attitude (four items), variety-seeking (three items), status consumption (five items), subjective norms (four items), media influence (five

items), group influence (four items), celebrity influence (seven items), physical vanity (five items), price consciousness (five items), beauty product innovativeness (five items) and purchase intention (three items). The students’ perceptions and attitudes were measured on a six-point Likert scale (1 = strongly disagree, 6 = strongly agree) based on the students’ extent of agreement or disagreement to the statements that relate to beauty products. A cover letter outlined the purpose of the study and provided the necessary contact details.

In order to ascertain reliability, the questionnaire was piloted on a convenience sample of 48 students. The pilot test was conducted at a South African HEI campus, not forming part of the sampling frame of the main study. The results emanating from the pilot test were coded and tabulated, and considered when finalising the questionnaire.

Permission to conduct the survey during class time was requested from individual lecturers of the applicable classes at each of the respective institutions. Thereafter, the questionnaires were hand-delivered to the participating lecturers to be distributed to and completed by their full-time undergraduate female students during a scheduled class. The completed questionnaires were collected thereafter.

1.5.3 Statistical analysis

The captured data were analysed using the statistical package IBM SPSS Statistics, Version 23. The following statistical methods were used on the empirical data sets:

 Frequency analysis  Factor analysis

 Reliability and validity analysis  Descriptive statistical analysis  Correlation analysis

 Structural equation modelling.

1.6 ETHICAL CONSIDERATIONS

The research study adhered to all the ethical standards of academic research. The academic staff of the participating institutions granted the required permission to perform the study. The

information provided by the participants was kept confidential at all times, and was used for statistical purposes only, guaranteeing the protection of the interest and identities of the participating students.

In addition, the questionnaire, together with an overview of the research methodology followed, was submitted to and accepted by the North-West University’s Ethics Committee. This procedure was utilised to certify that the measurement instrument did not request any information of a sensitive nature and that any individual who could be categorised as being vulnerable did not form part of the sample used for the purpose of this study. The questionnaire met the Committee’s standards and received the following ethical clearance number: ECONIT-2016-027.

1.7 DEMARCATION OF THE STUDY

This study pertains to female Generation Y students between the age of 18 and 24, registered at South African public HEIs in the year 2016. For the purpose of this study, three HEI campuses within the Gauteng province of South Africa were selected. These campuses comprised one traditional university, one comprehensive university and one university of technology.

1.8 MOTIVATION FOR THE STUDY

The cosmetics industry has experienced significant growth, resulting in increased competition amongst brands. Consequently, beauty product marketers and retailers require successful marketing strategies in order to gain a competitive advantage. Within the South African literature, limited research has been conducted on the factors influencing consumers’ purchasing intention with regard to beauty products. The findings of this study contribute to the limited literature available on consumers’ perceptions and attitudes towards beauty products. This study was conducted to empirically determine the factors that influence South African female Generation Y students’ purchasing intention of beauty products. One of the main purposes of this study is to add information and theory to the literature of South Africa and enhance beauty product purchase intention literature internationally. In addition, the findings of this study contribute to the ProGenY research project (profiling the consumer behaviour of Generation Y in South Africa) at the North-West University (Vaal Triangle Campus).

The findings of this study contribute to the literature pertaining to the female Generation Y student cohort in South Africa, concerning their perceptions and attitudes toward beauty products. Findings from this study provide insight on understanding consumers’ purchasing intention pertaining to beauty products. Furthermore, the results from this study provide South African and international marketers and retailers with information regarding this market segment. The results of this study could be used by marketers and retailers in the development of effective marketing strategies aimed at marketing beauty products to female Generation Y students, which will result in businesses obtaining a competitive advantage.

1.9 CHAPTER CLASSIFICATION

Chapter 1: Introduction and background to the study

In line with the lack of literature concerning the antecedents of South African female Generation Y students’ purchase intention towards beauty products, one primary objective, seven theoretical objectives, and 12 empirical objectives were set out in Chapter 1. In order to address these objectives, the remainder of this thesis integrates the following chapters:

Chapter 2: Consumer behaviour

Chapter 2 provides a detailed discussion on consumer behaviour and the consumer behaviour model. This chapter also comprises a discussion on the consumer decision-making process, with special reference to the different stages of this process. Furthermore, the factors pertaining to the consumer decision-making process are outlined and discussed. The last section of this chapter introduces various attitude models and theories.

Chapter 3: The theory of reasoned action and Generation Y

Chapter 3 comprises a comprehensive literature review on the theory of reasoned action, focussing on the possible factors influencing consumers’ purchase intention. Included in this chapter are definitions of these factors namely, attitude, variety-seeking, status consumption, subjective norms, media influence, group influence, celebrity influence, physical vanity, price consciousness and beauty product innovativeness. This chapter provides the literature pertaining to beauty products and the role these play in the fashion market and in everyday life. The chapter concludes with an overview on the Generation Y cohort, and more specifically the female Generation Y cohort.

Chapter 4: Research design and methodology

The sampling procedure, measuring instrument and data-collection method employed in conducting the empirical study are outlined in this chapter. In addition, an overview on the target population, the sample frame, the sample method and the sample size are included in this chapter. The response rate and the problems encountered are also examined in this chapter. Chapter 4 concludes with a discussion on the data analysis and the statistical procedures utilised. Chapter 5: Results and findings

This chapter includes the findings of the empirical study, following the analysis, interpretation and evaluation of the results according to the guidelines and instructions. The results of the statistical analysis procedures used to conduct the analysis are discussed in this chapter.

Chapter 6: Conclusions and recommendations

Within this chapter, a brief overview of the study is given and the main findings of the study are provided. Chapter 6 concludes with recommendations, suggestions and limitations for future researchers pertaining to the same research study.

1.10 GENERAL

Annexures are to be found at the back of the thesis.

Tables and figures are placed on the relevant pages of the thesis.

Where no source reference appears for figures and tables, it denotes own research. Referencing is based on the 2012 version of the NWU referencing guide: Harvard style.

1.11 CONCLUSION

This chapter highlighted the study’s context and background. Furthermore, the chapter introduced a brief overview of the fashion industry and its importance within the global economy. A discussion on the beauty product industry and the significant role it plays in the fashion industry was included in this chapter. This accentuated the importance of investigating the factors that influence the purchase intention of consumers in this industry. The research problem identified in this study was that there is a dearth of published literature regarding the

factors that influence consumers’ purchase intentions, especially in the South African context. As the young female market signals significant interest in beauty products, the study focuses on the female portion of the South African Generation Y cohort. In accordance with the problem statement, one primary objective, seven theoretical objectives and 12 empirical objectives were set out in this chapter. Thereafter, a brief overview of the research methodology followed to achieve those objectives was provided, followed by a discussion regarding the ethical considerations and demarcation of the study. This chapter concluded with an explanation of the contribution of the study and a classification of the chapters included in the thesis.

The subsequent chapter, Chapter 2, provides a literature review on consumer behaviour, with specific reference to the making process and the factors that influence the decision-making process, together with an introduction to various attitude models and theories. This discussion serves to address the first two theoretical objectives formulated for this study.

CHAPTER 2

CONSUMER BEHAVIOUR

2.1 INTRODUCTION

Consumers possess all the power in the business world, as businesses are dependent on the consumer spending his or her money at their business (Blythe, 2013:7). Therefore, it is imperative to understand why consumers behave in a certain way. Joubert (2013:2) concurs and explains that it is imperative for marketers to understand the purchase behaviour of consumers. Furthermore, marketers need to attend to this on a regular basis, as the purchase patterns, as well as product and service preferences of consumers are subject to continuous change. Determining consumer behaviour assists businesses of all types with planning and management related activities, and contributes to the long-term success of their products (Quester et al., 2011:6). Lamb et al. (2010:75) emphasise that marketers who study their consumers’ behaviour can use the findings to change the attitudes of their consumers, predict their behaviour in certain situations, as well as influence their purchase behaviour. Kardes et al. (2011:11) add that marketers who understand the behaviour of their consumers can predict the motivation behind their consumers’ purchase behaviour and, consequently, these marketers can deliver products and services that respond to those motivations and exceed the expectations of their consumers. An understanding of consumers’ purchase behaviour, habits and needs is a fundamental principle of marketing, and effective marketing strategies can be developed accordingly (Blythe, 2013:7; Parumasur & Roberts-Lombard, 2013:2; Quester et al., 2011:6; Taderera, 2010:6).

As specified in Chapter 1, the purpose of this study was to propose and empirically test a model of factors that influence South African female Generation Y students’ purchase intention of beauty products. The primary purpose of this chapter is to address the first two theoretical objectives indicated in Section 1.3.2. As such, in Section 2.2, consumer behaviour will be defined, with specific reference to the consumer behaviour model. Section 2.3 comprises a description of the consumer decision-making process, with specific reference to the different decision-making stages. In Section 2.4, the focus is on the factors influencing the consumer decision-making process, and Section 2.5 presents various attitude models and theories.

2.2 CONSUMER BEHAVIOUR DEFINED

Parumasur and Roberts-Lombard (2013:2) describe consumer behaviour as a combination of actions and influences associated with the purchase, consumption, evaluation and disposal of products or services, to satisfy a need. Examples of these actions include emotional, psychological and behavioural actions, and precede, determine or follow the activities consumers engage in to consume a product. According to Schiffman and Kanuk (2014:4), consumer behaviour focuses on the way consumers decide to spend the resources available to them to obtain products or services. These resources include time, money and effort. Blythe (2013:3,5) makes a distinction between a consumer and a customer, stating that a consumer is anyone who gain benefit from the use of a product or service, whereas a customer is the individual that makes the actual decision to purchase a product or service. While differentiating between the shopper, the buyer and the consumer, Lindquist and Sirgy (2009:5) concur that a consumer is the individual who gain the benefit by using or possessing the product or service, whereas the shopper is the individual who searches for a product or service that will deliver the benefits they are looking for. Furthermore, the buyer is described as the person who completes the transaction, and acquires the product or service. Consumer behaviour does not only include the behaviour individuals demonstrate to satisfy their needs and wants, but also the behaviour of families, groups and organisations (Hawkins & Mothersbaugh, 2013:6; Joubert, 2013:2; Parumasur & Roberts-Lombard, 2013:2). Kardes et al. (2011:8-9) reiterate that a consumer can be described as an individual consumer or an organisational consumer. Individual consumers purchase products and services in order to satisfy their own needs and wants or those of a third party. Organisational consumers, conversely, purchase products and services with the purpose to resell, produce other products or services, or operate a business. Given these observations, this study defines consumer behaviour as all the decisions, actions and influences associated with the selection, purchase, consumption, evaluation and disposal of products or services to satisfy needs. As this study is focused on the female portion of the Generation Y student cohort, the term consumer will refer to an individual consumer, and not an organisational consumer.

Consumer behaviour is a diverse subject (Quester et al., 2011:6). This is apparent as authors differ regarding the factors that influence consumer behaviour. Blythe (2013:7) indicates that consumers’ actual behaviour is created by their attitude, which comprises emotion, thought processes and intended behaviour, together with their personal and environmental factors. While, Hoyer et al. (2013:10) assert that the consumer’s culture and psychological core, as well as the

decision-making process and behavioural outcomes and issues, affects actual behaviour. Quester et al. (2011:7) maintain that consumer behaviour is influenced by the personal characteristics of the consumer, those of the product and the consumption situation. Despite the differences pertaining to the factors that influence consumer behaviour, a review of the literature suggest that all these influencing factors can be categorised into internal or individual factors and external or social factors. Internal factors encompass, among others, perception, learning, memory, motivation, personality, emotion and attitude, whereas external factors comprise culture, subculture, demographics, social class, reference groups, family and marketing efforts (Blythe, 2013:18-20; Hawkins & Motherbaugh, 2013:25; Joubert, 2013:5; Lamb et al., 2010:76). These internal and external factors are illustrated in the model of consumer behaviour, which also captures the general structure and process of consumer behaviour (Hawkins & Mothersbaugh, 2013:25). The following section provides an overview of this model.

2.2.1 Model of consumer behaviour

Consumer behaviour is a complex process that comprises numerous steps that are influenced by a number of factors (Hawkins & Mothersbaugh, 2013:6). Joubert (2013:5) opines that consumers make purchase decisions in a unique way because of the various factors influencing their behaviour. The following figure illustrates the conceptual model of consumer behaviour, representing all the factors influencing the behaviour of a consumer.

Figure 2.1: Model of consumer behaviour (Hawkins & Mothersbaugh, 2013:25)

According to the consumer behaviour model depicted in Figure 2.1, various internal and external factors influence the development of consumers’ self-concepts (their view of themselves) and lifestyles (ways in which they live). The internal influences mainly comprise psychological and physical factors, while the external influences primarily include sociological and demographic factors (Hawkins & Mothersbaugh, 2013:24). These developed self-concepts or self-images and lifestyles yield needs and wants that generally necessitate the decision to consume a product or service (Joubert, 2013:94). Subsequently, the consumer decision-making process is activated when individuals come across situations relevant to their needs and wants. Furthermore, the consumer decision-making process and the experiences and acquisitions formed by this process affect the consumer’s internal and external characteristics, which, sequentially affect the self-concept and lifestyle of the consumer (Hawkins & Mothersbaugh, 2013:24).

The activity of looking for, funding and consuming a product or service is followed by the mental activity of making a decision (Joubert, 2013:2). According to Blythe (2013:297), the decision-making of consumers is formed by their needs and attitudes, and marketers therefore need to have a thorough understanding of the factors affecting their needs and attitudes, as well as the mental processes consumers undergo when engaged in the decision-making process. Shiffman and Kanuk (2014:4) posit that the current marketplace is dynamic and evolves at a rapid pace. For this reason, it is imperative for marketers to have a complete understanding of the factors that influence their target market’s decision-making and decision-making process. In addition, marketers need to know what their target market want, how they think and work and spend their leisure time, as this will help them to determine how, when and where to reach their target market. As such, the following section entails an overview of the consumer decision-making process.

2.3 CONSUMER DECISION-MAKING PROCESS

The consumer decision-making process is defined as an intellectual process consumers use to determine the mental and physical activities they need to undertake to relieve tension caused by an unsatisfied need (Parumasur & Roberts-Lombard, 2013:250). Although Joubert (2013:124) posits that these activities within the decision-making process are chronological and monotonous, Taderera (2010:12) argues that some consumers may stray from this linear decision-making process and loop back to previous stages within the process. Various authors concur that the consumer decision-making process comprises five stages, namely problem recognition, information search, alternative evaluation, purchase decision and post-purchase evaluation (Belch & Belch, 2015:111; Hawkins & Mothersbagh, 2013:25; Workman & Studak, 2006:75). The sections to follow briefly describe each of these five stages.

2.3.1 Problem recognition

The first stage in the decision-making process is problem recognition (Belch & Belch, 2015:111). This stage focusses on the primary incentive that initiates the shopping for products or services (Workman & Studak, 2006:75). A problem arises when a consumer has a need without a clear goal on how to satisfy that need (Du Plessis & Rousseau, 2007:263). A consumer identifies a problem when there is a discrepancy between the actual state perceived and the desired or ideal state (Joubert, 2013:126). The actual state is the genuine situation the consumer is faced with at the current moment, whereas the ideal state is the situation a consumer desires

(Hoyer et al., 2013:185). The difference between the actual and ideal state serves as motivation to act, which results in a number of cognitive processes (Joubert, 2013:126). The problem recognition stage can be complex, as a number of factors affect a consumer’s problem recognition, namely environmental factors, individual differences, and information stored in the consumer’s memory (Parumasur & Roberts-Lombard, 2013:253). Environmental factors include personal information sources, marketing influences, promotional influences, and social and cultural influences (Joubert, 2013:128). Individual differences, also known as psychological factors, comprise the consumer’s motivation, perception, learning, personality and attitude (Schiffman & Kanuk, 2014:413). Once a need or problem has been identified, the consumer will want to satisfy the need or solve the problem through gathering the relevant information (Hawkins & Mothersbaugh, 2013:512). As such, this stage initiates the succeeding stage, motivating the consumer to find information regarding the product or service (Belch & Belch, 2015:111).

2.3.2 Pre-purchase search

The pre-purchase search commences when a consumer finds that a problem can be solved or a need can be satisfied by the purchase of a product or service (Schiffman & Kanuk, 2014:415). This, the second stage in the decision-making process, pertains to the pre-purchase or information search (Belch & Belch, 2015:117). Included in this stage are all the psychological and physical activities undertaken to obtain information regarding the recognised problem. Consumers begin searching internally for information by scrutinising their memory to gain information from previous experiences (Joubert, 2013:128). This internal search generally delivers a set of attributes and constraints the consumer use to guide the external search (Hawkins & Mothersbaugh, 2013:512). When the information gained from the internal search is inadequate, consumers resort to knowledge obtained from external sources (Du Plessis & Rousseau, 2007:262). These external sources are divided into two categories, namely marketer-generated and non-marketer marketer-generated sources. Marketer-marketer-generated sources comprise, among others, advertising, brochures, salespeople, product placements and retail displays. Non-marketer generated sources include friends, family, magazine articles, government reports, consumer organisations, news stories and word-of-mouth (Blythe, 2013:276). Consumers engage in the pre-purchase search stage with the primary goal of making more effective purchase decisions (Hoyer et al., 2013:195). In addition, while engaged in this step, consumers are likely to discover